Q. The risk-free rate and the expected market rate of return are 0.056 and 0.125, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to (Solved)
1. 0.142
2. 0.144.
3. 0.153.
4. 0.134
- a. 0.142